Shift in Supply

Conditions of Supply, Costs, Weather, Technology, Productivity, Number of suppliers, Rules/Regulations

What are the 6 factors affecting Supply?

WeTNPCR, Weather, Technology, Number of suppliers, productivity, costs, rules and regulations

How does Weather affect supply?

Bad or unpredictable weather may disrupt the production process for agricultural producers and harsh weather environments could also cause damage to other FOPs. Hurricane destroys land, agriculture and workers homes/producers properties and then they cannot supply

How does Technology cause a change in Supply?

Improved technology can cause a shift right for supply with increased productivity and decreased costs. For example, special tractors for agricultural farming does the job quicker and replaces 30 workers with one machine.

How does Number of suppliers change Supply?

If there are more suppliers in the market for a product, supply will then increase because there are more producers making the same thing.

How does Productivity cause a change in Supply?

Increased productivity from workers and producers causes increased output and then a shift right of supply. However, with things like Division of labour, workers may become demotivated and then productivity decreases and supply shifts left.

How do Costs cause a change in Supply?

If costs increase, producers may switch to producing something else entirely which moves supply left, or they can’t afford to make as many of the same product as before and decide to reduce production and decrease supply,

How do rules and regulations cause a change in supply?

Strict regulations (e.g., environmental standards, safety rules) increase production costs, causing a reduction in supply. Conversely, government subsidies (payments to firms) reduce production costs and increase supply.

What else are Factors affecting producting known as?

Conditions of supply